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Gaining credibility and enhancing economic growth through regional integration: The case for EU membership of Eastern Europe

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  • Piazolo, Daniel

Abstract

Trade between Eastern and Western Europe has increased considerably in the last years. Given this market-induced development, why should it be necessary to advance institutional integration? This paper argues that Central and Eastern European countries (CEECs) can potentially enhance the credibility of their governments' policies through institutional integration with the EU. The paper discusses the credibility problems faced by the CEECs and shows how EU membership will enhance the institutional setting and the governments' credibility. Based on regression results between an indicator of institutional change and key macroeconomic variables, an estimate of the potential impact of the CEECs' accession to the EU institutional framework on growth in the CEECs is derived.

Suggested Citation

  • Piazolo, Daniel, 1997. "Gaining credibility and enhancing economic growth through regional integration: The case for EU membership of Eastern Europe," Kiel Working Papers 837, Kiel Institute for the World Economy (IfW Kiel).
  • Handle: RePEc:zbw:ifwkwp:837
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    Cited by:

    1. Claudia Buch, 1999. "Capital mobility and EU enlargement," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 629-656, December.
    2. French-German Economic Forum, 1999. "Reduction of Working Time," Working Papers 1999-13, CEPII research center.
    3. Buch, Claudia M. & Heinrich, Ralph P. & Piazolo, Daniel, 1998. "Southern enlargement of the European Union and capital account liberalization: Lessons for Central and Eastern Europe," Kiel Working Papers 871, Kiel Institute for the World Economy (IfW Kiel).
    4. Diehl, Markus & Schweickert, Rainer, 1998. "Currency crises: Is Asia different?," Kiel Discussion Papers 309, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    Institutional change; institutional integration; transition; credibility; EU enlargement;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects

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